Question 1

What is the current conforming loan limit in San Carlos?

Accepted Answer

San Mateo County uses high-cost area limits set annually by FHFA. These limits exceed standard conforming amounts and adjust each year based on home price trends. Contact us for current year limits.

Question 2

Can I use a conforming loan for a San Carlos investment property?

Accepted Answer

Yes, conforming loans work for investment properties with higher down payments and rates. Expect to put down at least 15-25% and accept slightly higher interest rates than owner-occupied properties.

Question 3

How do conforming loans differ from conventional loans?

Accepted Answer

All conforming loans are conventional, but not all conventional loans conform. Conforming means the loan meets Fannie Mae and Freddie Mac limits and guidelines for secondary market purchase.

Question 4

What happens if my San Carlos home appraises above conforming limits?

Accepted Answer

You'll need jumbo financing, which carries higher rates and stricter requirements. Some buyers increase down payments to keep loan amounts within conforming limits and access better pricing.

Question 5

Do conforming loans require mortgage insurance in San Carlos?

Accepted Answer

PMI is required when you put down less than 20%. However, you can request removal once you reach 20% equity through payments or appreciation, unlike FHA loans with permanent insurance.

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